Buying time: The effect of Market Facilitation Program payments on the supply of grain storage

We estimate the impact of an unprecedented surge in ad hoc farm payments on grain inventories held by farmers. Payments thought to be decoupled from production may still distort markets if they affect other outcomes such as inventories. Through Market Facilitation Program, US farmers received approximately 23 billion dollars over two marketing years. The economic theory commodity storage suggests a cash injection can increase lowering opportunity cost storage. Using panel event study framework, we find Program significantly increased without similar impacts off-farm